If you are looking for new investing ideas, you might consider exchange traded funds. Exchange traded funds (ETFs) combine features of mutual funds with features of stocks. ETFs hold shares in multiple companies, but they can be traded like individual stocks.

Exchange traded fund or mutual fund?

An ETF, like a mutual fund, holds investments in a variety of companies. As the collective value of the fund goes up, it overrules the fact that a few of the holdings in the fund might be going down. With a mutual fund, you can buy shares in the mutual fund, which means that you own a percentage of each of the stocks in the mutual fund. An ETF, on the other hand, IS the stock. And you can trade it like a stock.

With mutual funds, you have to be wary of fees and expense ratios. With an ETF, you will still be subject to commissions or flat fees for making the trade. But right now, ETFs are cheaper. They are on the rise as something to watch, and so getting in can be less expensive than buying into established mutual funds.

ETFs also have great potential for growth. This, of course, means that there is also risk. Many ETFs, such as the renewable energy ETFs, invest in sectors that are up-and-coming, or that are risky (foreign currency ETFs are quite risky). This means that while the potential to make a large return on a relatively small investment is there, it could also mean a substantial loss.

Carefully consider your investment portfolio. If you have the room for the risk (and the emotional ability to stomach it), you might consider adding an ETF or two into the mix.

Disclaimer: I am not an investment professional. Do your research or consult with an investment authority before committing money to ANY investment. All investment carries risk. No matter the advice you get, there is still the potential for loss.